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with joe kernen. michelle caruso cabrera is in for becky who will be back on monday. the u.s. equity market, it's on track for a fourth consecutive week of gains. comments about fed officials about tapering the bond buying program in the coming months. take a look at futures this morning. going to flip that screen around there. dow jones, look like it will open up about 48 points higher. nasdaq up about 5 points and the s&p 500 up about almost 5 points, as well. if you're following the money in this rally, equity funds now attract $8.9 billion in the weekended wednesday. that compared to 7.7 billion in the prior week. also in washington news today, the house ways and means committee, they'll be holding a hearing on the irs scandal. lawmakers will be questioning the newly ousted head of the agency, steven miller.
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the treasury department's inspector general for tax administration is going to be appearing. among our guests this morning to talk about all this house ways and means committee chairman dave camp and we also have new york congressman charlie wrangle. both of them are going to join us in the 8:00 hour. michelle, good to see you this morning. >> you, too, and ru. thank you. a number of stocks on the move. jcpenney reported a larger than expected first quarter loss. the retailer's ceo telling analysts are chain is emerging from what he calls the abyss. but mike says he needs time to fix the issues which are large. we'll talk to an analyst and see if he has the patience to wear et out. shares of nordstrom falling in extended trading. the stock had been trading near record levels before the report. dell reporting a 79% slide in quarterly profits. earnings per share were roughly
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in line with the figures dow jones suggested the company would post. the company is not offering an outlook because of attempts to take the share private. shares of autodesk are up 0.9%. shares of brocade were reported below wall street estimates. joe, back to you. >> okay. back to me is okay. right? how are you? >> good. i'm good. you're hanging with the gates meister. no, you weren't. >> i think so. >> that's stupid. like people don't know. in other news this morning, jpmorgan has sent a letter to shareholders urging them to split the chairman and chief executive roles. the better reiterated the banks for certain board members who sit on the board's risk policy and audit committee. jpmorgan is making a final effort to deep back investors
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ahead of tuesday's annual shareholder meeting. and in tech news, yahoo! may want to buy tumblr. >> we've had, by the way, the ceo of tumblr on this program. >> any vowels in his -- >> i think there were. all right. yahoo! is engaged in serious talk toes that end. no word on returns. andrew would be the first one to know about this, we would hope. tu tumblr is trying to value the company at $1 million. give me an idea what tumblr does. >> a blog service. wait a minute, i know tumblr. she uses it and she doesn't even blog. i got it, i got it. bad for me to have to catch up with the viewers, right? they're all out there going --
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anyway, ebay is working on potential applications for google's glass project. i've got to talk to you about this one. >> the porn story, right? >> i did not! >> did you have to go there this early? >> yes. >> i'm sorry. 6 6:03:51. >> for me, i didn't understand the implication of that. i didn't understand how it would drive the innovation of glass because the screen is so small and what is it? >> because you can watch in the glasses wile you're walking down the street, is that the idea? >> no. >> i'm inventing in my head. when we go to break, we'll talk about it. when we go to break, you can leave and -- >> why do i have to leave? >> so you want to be included in this? you want to be one of the boys? you can't. you can never be one of the boys. google unveiled a half a dozen
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apps yesterday that will work on these glasses. >> think of it as a virtual reality. >> movie? >> there's a camera on the glasses. >> right. >> it gets interesting. i'll google it. >> there's something called pov, apparently. >> point of view. >> and that is a big subset. you're hands free, basically, so you're pulling -- right? i don't know. >> that's the concept. >> have i got it? >> you got it. >> all right. >> and the viewers got it, too. video games fell in april down 25%. mpd says console sales plummeted as eager gamers delayed purchases ahead of -- am i allowed to say microsoft?
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>> you are. >> interesting company as is sony. >> microsoft. are you going to bring up that again? we should. >>. >> i will not mention dan loeb's name again. >> it had nothing to do with "too big to fail" which is a buick wrote. >> we have a little bit of washington news to talk about. >> this is killing you. >> these scandals are not killing me. look, i love a great story. i think it's horrible for the country, but i think it's -- >> no, that's what i love about -- you get the feeding frenzy and even the median, even on the guy they love. if there is blood in the water, they're going to go after him. >> even charlie rangel is turning on the president. > . >> news beyond the irs hearing, the house voted for reveal of president obama's health care reform law dwred and was called
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symbolic act. the measure is not expected to go anywhere in the democrat run senate. >> let's take a vote on that again. >> all right. we might as well. you happen, i really don't mind that they do it. why are you laughing? they felt that way 36 times. are you happy that the woman that was in charge of the nonprofits is in charge of obama care irs? >> i know that. drudge bannered that. >> did you see her, too? she looks like she'd like to audit you in the most hard way. she did. she would slap you around. i don't think you would ever get out of there. >> exactly. >> google glasses. >> have you seen viewer dark --
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>> i might be asking you questions. >> you did see that part? >> i did. >> you hated that. why didn't you win an academy award. >> futures this morning are suggesting the dow would open higher by roughly 56 points, the nasdaq higher by 7 and s&p 500 higher about 6 points. oil at this oil, 95.47. brent is at 104.24. gas lee slightly higher. the ten-year note is up 0.1%. the euro will cost you $1.28 and the price of gold lower by $7 this morning, $1,379.9 per ounce. >> the first thing i saw this morning when i got in, westgate wearing some glasses. now we know why. now we know why.
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>> really? how about that. time for the global markets report. roscoe p. coaltrain in london. >> there they are. >> point of view. hands free. >> you know, the company monitors websites, ross. good morning, roscoe. you sound echoey. >> i have to idea. i didn't know what pov was until joe explained it to me. the point of view over here is we've turned things around. we're now weighted to the upside. 6 to 4 advancers over-pating decliners. you can see here we are up at the session high at the moment as we look out towards the u.s. open later. we have green on the board for
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the european stocks. we were down around 0.5% lower for some of these markets. take a look at the sectors. autos, banks, oil and gas up. volkswagen up 3%. they had a 10% rise in the annual like-for-like sales. very good news for them. fiat, on the other hand, had a 10% fall in sales for the same period, so much weaker performance for fiat and sharp bifurcation. so a very different market for autos today and that's where the focus has been, as well. comments out, as well, from the bank of england's monetary policy committee saying there are signs perhaps that we are moving on from this stagnation
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of the last three years. gild 11.84%. it has come down post the inflationary report. yields are back below the 4%. rallies as you can see around 30 basis points. there's plenty of discussion going on. whether this may widen out, some people talk about a target of of 0 paints points between italy and spain are now saying we've got a comfortable italian political position meeting. we can deal with that. the focus will once again return to spain. perhaps we're seeing whether that holds true or not. but right now, u.s. equities up with u.s. futures. back to you guys. >> thank you so much. roscoe p. coaltrain. taylor has no idea who that is. >> it's a running joke for you to say, this is who that is and then you don't have any idea who that is. >> that's why we have you on facebook. one year since facebook went
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public. kayla touchy joins was a look back at the long awaited debut and what many called a debacle that followed. >> good morning. last year i did a segment on this on the "today" show. instead of a cnbc correspondent, my title was facebook expert. and i thought, oh, great. that sounds like i spend a lot of time on facebook. this time last year, facebook was valued at $107 billion. before it touched the public markets, $26 a share. it's now worth $63 billion. investors and underwriters say the company is faring just fine, but the valuation has yet to recover from its first fateful day. ceo mark zuckerberg and company ring the fass dak's opening bell. >> this is a moment in american business and we do not know how it's going to turn out. >> at 11:00 a.m., facebook stopped priced at $38 per share
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the night before it was scheduled to make its debut, the opening delayed by technical problems at national dak. >> you say 11:00, then 11:05. all it does is make me feel less certain. >> 30 minutes later, it actually opened at $42.05. >> we are under. look, facebook opening for trade. >> only 30 second in and 82 shares were traded. but 20 minutes in, prices tumbled below $39. rumors swirled as to why. >> apparently the fass dak system was clogged. >> four hours in, despite the technical glitches, the facebook ipo breaks records. its passing the $4.8 million general motors set on its first day of trading 2010. >> facebook has broken the record for volume. >> one below below $38 at one
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point. >> on this closing bell, we are ending a tough day on wall street today? >> huge volume, but roughly flat, facebook closing $38.23 leaving the future of facebook unclear. >> not at all the kind of opening that many were hoping for and expecting from the most highly anticipated ipo in quite a while. >> a year later, the company has landed on its feet operationally. the stock has yet to recover. but investors who are bullish say there's nowhere up from here. at least that's a silver lining. >> that makes me feel better. >> still, the burning question is how to monetize mobile. are we still asking that same question? >> i don't think so. this time last year, that was the big question. they introduced this line to figure out how to monetize it. it's their percent of revenues last year was zero dollars. this year, it's 23% and growing.
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>> so it's solved? not solved entirely, but they had to develop an entirely new app first for the ios and android nivi. >> i want to ask henry bogginger -- >> he was here a year ago. >> he was the guy who said muppet baby a year ago. >> it's a $65 billion company. the real question is, with 6 billion in revenue, when does it really become a -- i mean, how are you a $65 billion company if you do 6 billion in revenue? what are your profit margins? up 800%? anyway, go ahead. >> so my question is, is it a failure, then? i remember we had a debate last year and people came on and said is this a failure for investors, but not facebook.
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>> google is the opposite. >> because they went -- >> google gave nothing to the people that were selling and gave everything to the people that were buying the ipos. >> and that's the case for amazon. >> facebook took everything from the people that bought it at a penny a share. they got 30 whatever. >> i have to tell you, when it all came and went, i thought, hats off to mark zuckerberg. everything said this is a great success because it popped 100 on the first day. that's money that the company should have had. >> except if they only sold 10% of the company, it remained 90% was valued more than the 10%. think about it. they sold 10% of the company at 20 and then their 90% is at 80. >> the company waited eight
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years from its inception to go public. a lot of companies go public earlier and the growth prospects, revenue prospects are unclear. facebook proved last year that it could make money. that's unlike a lot of companies that decide to go public early. so that's one thing. and because they waited so long, the venture capital investors who he had that money borrowed at that point needing to give it back. and the nice thing about it now, i say nice, but when you offer a tiny slice of an ipo, that means there are more shares to be sold down the line. when i say, well, at what point do you see this marketing? i say there's nothing else to sell. this is the company we see fit to operate in the coming market.
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>> i bought every dime i could out of the markets. >> and you thought you accomplished at 26. >> that's semantics. >> we caught you in a rare moment of where we got to see the inner mind. >> yeah, yeah, yeah. and you know what? you are the balls. you are. you should feel good about that and pat yourself. look at what you did. >> because if you don't -- >> nobody will. anyway, and then -- >> thanks for everything. >> you're welcome. >> golden globes, hanging with stars. >> andrew, do you know who roscoe p. coaltrain is? >> yes. dukes of hazzard. come on. i remember daisy. >> you remember daisy. >> daisy as jessica simpson.
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>> i'm going to edge away and push myself away from the set. >> and the star sister-in-law. >> what? >> i have no idea. >> man. but it was a great show. >> coming up, how one airline is speeding up the boarding process. first, though, earnings from the pros. andrew hits the golf course. joe, i want you to look at this. this is my ball on the green, joseph kernen, right here. i'm very proud of this ball. i want you to look at it. i want you to study it. and i think we should actually probably play together one day now. what do you think?
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welcome back. american airlines is letting passengers board sooner. if they don't have the horrific things on wheels that people try to pull down the center aisle. you're sitting there and they have to put it above you where if they drop it -- >> i do that. >> it takes too long. it has to be faster -- if you take golf clubs, you have to
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wait at the -- >> i don't take a golf cart. >> at the baggage claim, anyway. >> i know you do. i hope they charge you every time you check. >> the airlines lost my bags on my honeymoon for seven days and as a result of that, i will never again and i will be the guy with the wheelies. >> we went and bought a lot of clothes, actually. >> american airlines for a full week lost our equipment in cyprus. so we had to pay satellite fees and -- >> doing commercials for american express, they paid for all the clothes. >> they did? >> yeah. because if you have the card, they give you an allowance for every day that -- >> and you had a couple of things that might not be in there, right? i know how you operate. and they were all armanni. >> exactly. instead of target. >> instead of men's warehouse.
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>> you're going to like how you look. >> the airline says people carrying just a personal item that sits under the seat will be allowed to board before most other passengers and then you can at least sit while everybody else waits. >> i hate not being able to put my bag overhead. because sometimes they'll tell you you have to check it, anyway. and you land in the country, you have to go to work and you don't have all your stuff. >> if you basically hand your stuff to the pilot and he puts it in the back of g4, actually. >> the pilot usually doesn't like to touch the luggage. they have a person for that. >> there's a whole team at teeter borrow. they take care of everything. >> that rolls right off your tongue. it would be natural to be -- you're kidding. anyway -- >> let's get the national forecast from the weather channel's jen carfagno. >> becky, i think if you are a roller bag, you should go on first and let anyone who decides to carry on last. would wants to sit on the plane
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while everyone loads all their stuff. i'm going to equal american airlines and tell them to switch it up. today across the country, we're watching some thunderstorms. we're watching a severe weather outbreak over the weekend. today is the beginning of things. this spin right here, this is the energy that brought those nasty violent thunderstorms to texas. it will cause some thunderstorms today. could be severe. certainly not widespread across mississippi. thunderstorms ongoing this morning in minnesota and iowa. those are the two areas we're focusing on today for severe weather. those nearly get going over the weekend. all of the energy coming out of the west, lots of moisture from the gulf of mexico getling pumped north right across the plains. this will away slow-moving systems. lots of things to lift the air and get the thunderstorms going. we have a dry line, a cold front here. so thunderstorms will erupt tomorrow and we are watching the risk for tornados. northwestern kansas, southwestern nebraska, 40% chance of tornados popping there.
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and then on sunday, slightly to the east, but some of the same areas under risk again. north central oklahoma, 5 out of 10 risk. into kansas, south central kansas, 6 out of 10, a 60% chance of a tornado happening within a 50 mile radium. we are urging people to make sure they have a way to get warning us through the weekend and have a plan. on monday, the threat continues. same storm system we're tracking. 5 out of 10 in central oklahoma. it extends up into the midwest. we're watching into northwestern illinois. eastern iowa, a 5 out of 10% chance of tornados occurring across this area. despite the tornado that's we just had in northern texas, devastating. we are well below the average. 81% below average for the month. this could be a wake up call for people, very active weekend. >> details, details, details.
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any dornd is climate change. thank you. >> she knew that. >> she knew that. actually, i -- actually, i'm not going to out any of the other peop people, but i've got some allies at the weather channel. >> vast majority. >> you can't go and out them or they'll get audited. >> we have a comedy segment coming up right now. it is time to learn from the pros. i did need a lot of help. i recently played a few soggy holes at the elmwood country club in white plains, new york, with some very good sports given the weather. with a group of experts including deutsche bank's david bianco. take a look. in this weather, i'm paying attention to weather, i'm attention to how wet i'm getting. it's very hard to focus. >> it is. you just have to be patient.
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you have to trust in what you're doing, believe in what you're doing, go back to the fundamentals. >> so are you the kind of guy that gets the when it comes to investing? >> no. you have to watch out for the dangers that are out there, the inclement conditions. >> kind of like today. >> and watch out for lightning. that's dangerous. recessions, overvalued markets. >> if you were going to hit the ball over there, right over there -- >> go ahead. >> would you go for the green? are you going all for it? are you more willing to do a lay-up? >> you have to think about the stakes, how to make that to win the tournament, yeah, i'd take the risk. but if i'm already having a great year, lots of winning, i would want to make sure that i protect that. >> have you always got in better or are there times that you have a little bit of a rough patch? >> oh, it's a rocky road all the
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time. you'll see that on the pga tour. guys get on a hot streak, they go for a while and you don't hear from some of these for months. it's a rocky road, kind of like the markets. >> i'm going to hit a car. >> the guy gets a puck in his car there. >> pretty much. >> what do you do when you get behind? because i get wind and then i get nervous and i get anxious and it can be a real problem. >> don't take needless risks. we don't want to finish at the top, but in golf, you come in in the top ten and you don't want to lose all of your older capital. >> there you go. >> there we go. >> i think of myself as a microminder in terms of investor. we have the golf issue drive per share. you really have to figure out the asset class and execute.
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>> we obviously had to practice that multiple times. >> i was going to laugh but i can't because i miss those. >> oh, no, we did. i wasn't really joking. >> oh, yeah? >> yeah. you looked like -- did you play center at -- during basketball? >> only on a relative point to david. david was a point guard. >> he has a great swing. >> he can play. >> and you see the pro. did you see how his hands followed his -- the clubs followed his hands. i have to think about it. you didn't look -- you didn't look good. you sucked. >> basically. that's from caddie shack. >> you're not good. >> i'm not good. >> we had some funny ones.
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we can do it. >> no, we can do it. >> i don't know if there's more of these coming. we were at one point -- anyway, we followed up throwing a ball at the tree just to make a comedy. >> it might happen naturally one of these days. >> we had a couple hit the streets. but we should play golf. >> oh, my other comment was -- because i can take it here. you couldn't get a marine to hold the umbrella for you while you were -- >> i saw that yesterday. >> no ops marine? >> the marines aren't allowed to hold umbrellas technically. wasn't that a marine holding the umbrella. >> it was. but technically it's against the rules for a marine to hold an umbrella for everybody including the president.
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>> why? >> it's in the handbook that a male marine is not allowed to hold the umbrella, period. a female marine can hold the umbrella, but it should be a collapsable umbrella. >> aren't all umbrellas collapsable? >> i think they meant -- >> andrew, there's been a lot of executive orders where he hasn't been allowed to do things where we've done things. don't you think? who is going to tell him no? >> not the marine. >> no. coming up, jcpenney asking investors for patience. we'll ask one retail analyst if wall street has negative left for jcp. then later, we'll be joined on set by the editorial director of "billboard" magazine. the finalists for top artist if you're a bieleber, you like
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justin. then there's that guy on "the voice," this is adam, maroon 5. one direction. rihanna. >> i love taylor swift. >> i love taylor swift. ♪ [ female announcer ] there's one thing dave's always wanted to do when he retires -- keep working, but for himself. so as his financial advisor, i took a look at everything he has. the 401(k). insurance policies. even money he's invested elsewhere. we're building a retirement plan to help him launch a second career. dave's flight school. go dave. when people talk, great things can happen. so start a conversation with an advisor who's fully invested in you.
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welcome back to squawk. a little taylor swift on this friday morning. jcpenney is reporting a bigger than expected first quarter loss. paul is joining us from morningstar. good morning to you, paul. are you a taylor swift fan, as well, with the rest of us out here? >> who isn't? i don't get to listen to too much music these days. >> the earnings were quite miserable yesterday. how long is the honeymoon for this new ceo? >> well, you know, i think the summer is a weak retail period in general. but there's a lot of discussion of how much better things have gone since the promotions have come back. they said we can't say anything bear because we're in a bond tinder and securing a loan from
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goldman. but i think if the traffic and the actually sales can pick up, i think people will ex extrapolate that this things will work. you have no worries about cash, right? >> i think cash is always a worry when you're losing this much money. but the quick numbers are this, they burned $214 until in a quarter. they stretched payables more. it's better than expected. when you break it down, if the sales can turn around, i think they make it to the fall. then they also said they thought they would be back into the merchandise that they can promote in the fall. so that is the line people will be looking to. >> there are still so much upgrades if they follow the old strategy and orders and money
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that's in place and i just can't tell if a year from now you're going to walk into these stores and half of them will look like they're now and half of them will look older. it's going to be sort of a rag tag of things. >> yeah. and i think one thing to point out is some small stores were never going to get the full shop upgrade. and though they said they're not going to give the clear strategy, it's clear he's calling the new shop the transactions instead of a shop in store strategy. but he's confident that the shops or the attractions will attract new customers. i think that's strange irony in this whole thing was sephora. it went up during a 25% decline in sales, but that's connecting with a new customer.
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so the i think the attractions are working and will work. >> is this a company that ultimately gets bought, gets taken private, hangs out on the public markets for the next couple of years and trudges along until maybe it catches a bit of steam? >> yeah. i think the end game is just to get back to free cash flow and then start trying to, you know, gain market share. but that's not a home run. it's not the same go for broke strategy. so it's a little safer, maybe. coming up, we catch one ray dalio. and then among the finists
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al week long, we've been looking back at comeback companies. jackie deangelis joins us now from jackson, new jersey, can the story of six flags. >> good morning, michelle. this stock is up over 300% since may 2010. part of what's driving the momentums here is this post
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bankruptcy leadership team. he is known as a turn around specialist of sorts. he's focused on the idea of six flags as a regional theme park leader. he is not trying to have these parks be all things to all people. he's put a very focused team together. they are work to go improve operating efficiency. and their other goals are to innovate and reig vig rate their brand. >> i took people from within six flags and promoted them up. i've braet some people from within the industry in to help bring new thinking and people from outside of the industry such as myself. and i think the culmination of all three have made a huge difference in terms of our ability to really look forward and drive success. >> so people are first and foremost, but another key strategy is to work on these financials. for the first quarter, we saw revenues up more than po% year over year.
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by all accounts, analysts are saying this is a great first quarter. what is great is you don't have to necessarily fly here, you can drive here. if gas prices go up, you are still getting those revenues in the door. >> what it also does is takes a person who might only go one time during the year and incentivize easy them or encouraging them to go multiple times during the year. >> six flags has 18 parks in north america. what they're doing is bringing new things to each park. main attractions. so here in new jersey, for example, they're working on this integration of their safari to make it a ride within the park. that is going to open on memorial day weekend. and it is the biggest safari outside of africa. it's going to have 1200 animals.
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meantime, most analyst that's look at this company, they have buy or outperform ratings on the stock. the stock trading above $78. those price targets mostly in the high 80s. i want to say while we spend the day here, the park is going to open at 10:30 in the morning. i am apparently committed to riding the tallest roller coaster in the world. it's the fastest in north america. and my produces said she would do it with me. guys, back to you. >> oh, all right. cool. can't wait. thank you, jackie. >> all right, jackie d. cool name. coming up, big business of music with billboard magazine. she can be a rapper. i don't think just -- >> you don't like that? >> the stupidest things in the world -- >> i love it. i wanted to do one. >> let's try to get them here. >> yeah. >> i would never. you see, i can't listen to this song any more. the one day that i came late to this show, they played this song
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as i walked in. call me maybe. let's stick to after lion sleeps tonight. >> hedge fund manager ray dallio is up next. we have a couple of comments on him from the fed. stay tuned. that maybe it couldn't, but he would be one who wouldn't say so till he tried. ♪ somebody scoffed, "oh, you'll never do that." "at least no one has ever done it." but he took off his coat and he took off his hat, and the first thing we knew he'd begun it. there are thousands to tell you it cannot be done, there are thousands to prophesy failure. there are thousands to point out to you one by one, the dangers that wait to assail you. but just buckle in with a bit of a grin, just take off your coat and go to it. just start to sing as you tackle the thing that "cannot be done," and you'll do it.
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welcome back to "squawk box" this morning. hedge fund manager ray dalio
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receiving the money management lifetime achievement award last night. here's what he had to say when asked if all the fed's quantitative easing has been artificially inflating the markets. >> i think what has been artificial is there's been a lot of printing of money which has driven short-term interest rates to make cash terrible investments and to make bond a terrible investment. both the printing of money and the seeking of safe returns have driven money into cash. with a negative return of 2% in cash and half a percent in bonds, that's a bad investment. as a result there's a reaching for return. that's driven other assets up. there's a beginning of a leveraging process. and that is good for assets over the near term. so i think that assets will continue to appreciate, but there will also be a tightening ahead.
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>> we had him on last fall and he predicted a little bit of where we are today. said there would be a turnover. we haven't seen the full turnover from bonds. >> the grand rotation. >> almost 2% on the tenure. >> he wasn't giving away too much. >> were you here for tepper? >> of course i was. good interview. >> fine. let's go to the billboard music awards taking place this sunday in las vegas. literally making a pit stop on his way to the airport is editorial director on the billboard magazine. he needs to be -- all your children. you love them all equally. we were just talking about there's things that you love yourself. but you can see the value of call me maybe somehow, right? >> i can. i can. >> but you've got to be that way
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because of your job. >> in fairness, i started as a music credit ill. i was never any good at it because i never wanted to argue with a room full of people. >> it is to think your case should overrule someone else's. tv is still a place that can make an artist. >> tv is still king. there's a lot of talk how this format or that one is in decline. it is still the king maker. look at the skills. the one for the grammys. it's just massive. it drives awareness. we just ran a story on billboard magazine. you would need the top 500 or 600 apps, for example, right now from a marketing specialty for the top three tv shows.
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>> we're audio/video. we're both. we're watching very closely the way this plays out in the music business. are we seeing the content is still going to be valued at what it's worth? it's not going to be digital pennies versus analog dollars? >> we are on digital pennies. >> people in the music business can still make $50 million, can't they? >> they can. it's happening in live space. artists are going on the road. they're doing touring deals. it's happening in the grand space. brands use music to tap into fans's brains, right? >> they're making the money differently. >> a little bit differently. but the pennies are starting to add up. look at four or five years ago, itunes is responsible for 90% of digital share. and that was probably 30% of the revenue. today it is 50% to 60% of the
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labels revenue, but you're seeing a new slice of the digital revenue. you have vivo, amazon, spotify, youtube. >> i'm confused. why is it 100%? are people still buying cds? >> people are still buying cds? >> you can go to best buy, target, walmart. >> spotify still doesn't make money. >> it's in investment mode. they're expanding rapidly, globally. i don't know that it will make money. >> but how -- when i go to spotify, my favorite channel is bill afford top 10. >> a lot of people do. >> all the hot hits are right there. they rotate them. do you make money from that? >> no. that is stay relevant, keep an eye on it. >> what time? >> 8:00 eastern. >> on sunday night.
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>> thank you. appreciate it. have fun in vegas. >> thank you. what stays -- welsh you know. >> coming up, this morning's top stories. plus, a year after the social offering. you know. i got this. [thinking] is it that time? the son picks up the check? [thinking] i'm still working. he's retired. i hope he's saving. i hope he saved enough. who matters most to you says the most about you. at massmutual we're owned by our policyowners, and they matter most to us. whether you're just starting your 401(k) or you are ready for retirement, we'll help you get there. tdd#: 1-800-345-2550 when i'm trading, i'm so into it,
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. don't fear the fed. investors turn skittish after several fed officials push to begin tapering the bond buying program. this morning stocks look to open hire. bob dahl tells us how he will look at the next market move. facebook one year later. why mobile is so key for the
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company's future. forbes associate editor steve bertoni here to explain. climate change controversy. a new theory on carbon dioxide. why he says arnold bon dioxide may not be such a big deal after all as the second hour of "squawk box" begins right now. good morning. welcome to "squawk box" on cnbc. i'm michelle caruso-cabrera. becky is off today. she'll be back monday. industrials open higher by 45 points. nasdaq by a little more than 6. nasdaq 5.
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>> stinky earnings. here are your morning headlines. steven miller was dismissed as interim irs commissioner in the wake of targeting conservative groups will be questioned by the house ways and means committee. wow. they were quick on that. only came out tuesday. we'll speak with dave camp ahead of that hearing. jpmorgan stepping up. sent a letter to rejecting a proposal that would affect such a split. the letter was directed to those who haven't yet voted ahead of the annual meeting on tuesday. dish network asking the fcc its acquisition of sprint. it asked wall street investment banks. >> we have a bit of tech news. yahoo! may want to buy ittumblr.
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it would value the company at a billion bucks. interesting to see if willing to shell out a billion dollars. henry blogett is here. can't afford twitter. >> are you able to comment on something yahoo! related. >> i won't say too much. but it's interesting. >> there was a time with we traded 10 overvalued cats for 10 overvalued dogs. >> a billion dollars is as much as they can afford. it's young, hip.
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it needs that new social thing. they're not going to build it themselves. >> you don't pay that for just young and hip, do you? >> you're paying not for the technology but the users already. >> here's the experts on new paradigm. >> a real problem mondmonetizin. >> you remember when we used to explain things we didn't understand with different pair dimes? >> eyeballs. >> a young mr. forbes is what i say. >> dow? >> google had no revenue for five years. facebook had no revenue for five years. they are now very successful,
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highly profitable fast-growing businesses. the idea they were worth zero. >> they still have 6 billion in revenue in a $67 billion market cap. >> just the ipo. >> ten times revenue. >> dell reporting 79% slide. earnings per share roughly in line. the dow jones suggested the pc headacher would post well below analyst estimates. now, are you going to introduce him, joe? >> again? let's get to our squawk reporter roundtable. both have had a lot to say. >> he's not a reporter. he's a ceo. >> i'm going to introduce both of them. both of these guys have a lot to say on a variety from facebook,
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irs scandal, henry blogett is here. he's the ceo. one of the fat cat types. overpaid, unscrupulous, unethical. >> small company. >> ceo, editor and chief of business. >> start-ups. >> why don't you grow it? and steve bertoni, associate editor of forbes. the young mr. forbes. >> i am not a ceo. >> someone said we were doppling. >> he's like a good-looking andrew ross sorkin. >> i guess we will go to break. >> we already did. >> i'm not sure. it's like when facebook bought
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instagram. they didn't have revenue or revenue platform. >> a very good point. everybody looked at that and said, oh, as if we needed more confirmation this was a 27-year-old idiot. that was brilliant. brilliant acquisition. >> silicon valley at bars they still argue. >> the adults are quitting facebook. where are they going? instagram and tumblr, by the way. >> are you like citigroup? do you have years of tabs loss carry forwards? >> we do. >> we're putting it all overseas. >> how about irs. do you have comments? this is a problem, is it not? >> it's very embarrassing. it say problem. certainly deserves to be
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investigated. it is being investigated however. at this point i don't see more than a bunch of boneheads within a big agency doing something on their own. we will see when the facts come out. the idea this somehow goes right to the top. >> you don't know it does until it does. >> let's assume you're right. >> then it's management of that. >> and then the other question is going to be, did people know they were doing that, right? >> absolutely. >> maybe they were complacent in all of that. >> they had to catch drift of it. there were a lot of complaints. everybody complains about being harassed. all the time. nobody likes the irs. i'm just saying, let's see the facts come out. it's so powerful -- >> it's a larger point. if it doesn't reach higher, it is testament to the power of bureaucrats. you weren't hear yesterday when i start odd this. they will take it and use it and use it against people. especially when the tonality from the top, even -- if they're
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not told, do this, they think at least, based on what they've heard, it's okay to do this. absolutely. that tone was set by the president. >> anybody can abuse power on either side. same with the ap. the one way to look at this, the president is being incredibly tough on national security issues. the doj is using every right that it has. in certain cases it does have the right. >> you're not arguing like a journalist. that's what i would say. >> in the journal they point out, what is it? how many estates is it? is it the fifth? what are you called? >> the fourth. >> you are too. >> no, i'm not. >> i thought you were an ink-stained wretch. the journal has a piece they finally woke up. every other abuse of power, go, mr. president, go. until it hits the ap. now, all of a sudden that's the journal's piece. >> the timing is funny too. slight of hand. don't look over here. look at the new shield.
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it's a very strange timing. rolled out out the same week or day. slight of hand. >> you're totally cool with it? >> with the ap thing? >> yeah. >> totally. >> because you believe they were doing it in good faith. >> yes. >> you do. >> even after the the first couple weeks when they were e getting nothing? don't you think at some point -- >> i am behind attorney general holder on protecting us. i'm ready to fire. >> and the leaks unto themselves was a protection issue. >> i'm sort of just making the case that, you know, the bigger point that everybody has made, you get the irs messing with people and there's going to be a problem. a couple of journalists get their panties in a bunch and it's par for the course. >> 20 phone lines they were tapping. >> interesting dilemma -- >> a bona fide al qaeda guy
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planning a bomb. >> the editorial, should the ap have printed it at all? did they out somebody that was helping the united states and now suffered as a result? >> it's a journalistic issue. >> are you more bothered by the ap story than the irs story? >> not necessarily. i'm bothered by both. >> you're bothered by both. >> i'm closer to you on the ap story. i'm not completely horrified. only that it went on as long as it did. >> the irs story horrifies me incredibly. when you have been pulled over by a policeman, do you feel helpless? i've been audited. when i went in sitting with this low level bureaucrat. this guy. they are so full of power and authority. >> and love it. >> and they can do whatever -- i shouldn't even be saying it. i shouldn't be saying it. i don't want to do it again. they can garnish your wages,
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send you to jail, accuse you of this. they can drag it out for years. if you abuse the power of the irs, that's where 75% of americans are saying -- >> the power of democracy. i'm going to a very extreme point here. the power of bureaucracy and how damaging it can be, the arab spring started because of a bureaucrat who abused their power. one too many times. he lit himself on fire not because he wanted to vote or women's rights, because he wanted to make a living. a bureaucrat drove him to that. >> you have tremendous power. you have to have integrity. do your job as well as you can. prosecutors have tremendous power. every job -- >> i can be fired. >> accountability in government. >> exactly. >> there is no accountability.
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head of the irs already sacked. >> he was there four months. >> he wasn't even overseeing it and he got sacked. >> steve miller. >> doesn't work if i have to say it eight times. >> that was fast. >> it wasn't fast. >> anthony weiner. steve miller. wiener, miller, wiener, miller, wiener, miller. >> very nice. ♪ >> we'll get more from steve and henry throughout the show. >> okay. comments, questions anything you see on "squawk box", e-mail us coming up, s&p snapping a four-day winning streak. bob doll's thoughts on the tempering tapering comments.
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"squawk box" is coming right back after this short break. . coming up, meet the man who says global warming models are wrong again. princeton professor of physics defends his few and explains by co2 is not a pollutant. ♪ [ agent smith ] i've found software that intrigues me. it appears it's an agent of good. ♪ [ agent smith ] ge software connects patients to nurses to the right machines while dramatically reducing waiting time. [ telephone ringing ] now a waiting room is just a room.
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david tepper telling "squawk box" he is still bullish on stocks and investors shouldn't worry about the fed tapering it's massive bond buying program. >> there better be a true taper. or you might be in the last half of '99. guys short better have a shovel to get themselves out. >> san francisco fed president said central bank could start easing back on purchases and end its program late this year. if you believe david tepper, is this another buying opportunity. chief exist strategist. good to have you here. >> good morning. >> we have david tepper's comments on the one side. we have several headlines that say the rally is starting to wear. earnings ratios not good anymore. where do you come down right now? >> i'm still constructive. i think the forces still point
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higher, meaning we still have central bank power. yes, the fed, and some day they won't be there. don't forget the bank of japan just started. we have a government that deficits that are shrinking. it's hardly an issue we talk about these days. that was a huge deal around the sequestration issue, the fiscal cliff and that sort of thing. look, i can complain as well. stocks are acting a little tired. maybe they need a rest. and the fundamental earnings. first quarter earnings not great. that is more importantly revenues and guidance. they need to get a little better. i suspect in the second half they will. >> 22% over the last 12 months for the dow industrial average when i look at the one-year, if you're constructive, how much more can we get? >> well, you know, it depends how long the fundamental remain good. i can buy the s&p 500 and get a
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higher yield than 10-year treasury. that's pretty unusual that stocks yield more than bonds which tells me i suspect we still have more room. now, the fed, remember when the january minutes were released in march. the stocks had a bit of a hiccup. it does not mean it's the end of the bull market. >> the markets are getting a little tired here. over the last eight months how many times when you would have said -- when you wouldn't have said the market seems like it's getting a little tired here? >> well, there's no question that the periods have been followed by at worst sidewise action. early march to mid-april when the stock market went nowhere for six weeks. that was a correction by going
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side wise. >> we always kept it. we have been hitting new highs every couple of days. everybody is always talking about maybe -- everybody always has to throw in that calf yet. any time. they want to be so right about timing that maybe there will be a little bit of a correction. no one embraces it except tepper. stocks are higher. all the sell side guys are always on the day that they're on always ready to say we might be right on the cusp of a pullback so they don't get caught blind-sided. it gets old. >> i don't disagree with that. you will hear me talking on both sides of my mouth. >> not you! >> i do believe six months stocks are higher than where we are. if you have cash, go buy them. >> what would it take to get the retail investor involved?
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>> institutional driven rally. what do we have to do to get main street greedy? what are you looking for? >> i think there's some evidence that retail is coming in. volume has picked up a little bit. and evidence that they put cash to work. you heard them talking about the great rotation. no evidence about that sell bonds to buy stocks. i think it makes me think there's another up leg. there's still doubt all over the place. as he joe is hinting, as david tepper said, and i will echo, you don't get ends of bull markets when everybody is doubting everything. >> yeah. do we have a six-month chart? it's hard -- it's been straight up really. what's the biggest pull back? >> that's the point. at any point in time we all know 1.5% 10% every calendar year. we vice president had one for quite some time. doesn't mean we have to have
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one. and the short run is impossible to call, i argue. we all try. >> bob, thank you. good to talk to you. >> coming up, shock jock howard stern apparently loves palm beach. he has 52 million reasons that he's showing that. that story after the break. and op ed sparking a debate over carbon dioxide. the same thing as carbon. it doesn't sound quite as -- >> ominous. >> yeah. all that black smoke on the environment. we speak to william happer, in defense of carbon dioxide. >> still to come, facebook one year after its ipo. what investors have learned and what they need to know for the future. a look at the social media giant is just ahead. [ penélope ] i found the best cafe in the world.
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nespresso. where there is an espresso to match my every mood. ♪ where just one touch creates the perfect coffee. where every cappuccino and latte is made at home. and where i can have exactly what i desire. ♪ nespresso. what else? >> welcome back. howard stern picking up property in palm beach. he reportedly bought a piece of ocean front property for $52 million in a private sale recorded on wednesday. it marks the biggest real estate
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deal this year. palm beach. i don't know whether howard is going to be accepted into the -- >> i was going to say. >> he's not going to be going to the parties. >> those people want to be hanging with him. >> they might let him in. two homes. main house, 5 bedrooms, 18,673 square feet. not 74 or 72. the smaller structure -- we don't have an exact number. just under 1,200 square feet. ocean front swimming pool and extensive landscaping. >> we have a picture of that. >> oh! there we go. >> thank you. >> that's nice. >> a little bit of real estate porn in the morning. >> i wouldn't even want to pay
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taxes on worth $40 million. >> remember, it's florida. >> is that croquet in there? that square. >> one of the highest properties in palm beach. do you go there? >> no, we don't. we're not florida people. comments or questions about anything you see here on "squawk", shoot us an e-mail. follow us on twitter. coming up, facebook one year after its ipo. we'll ask our guest hosts whether they would be a buyer of the stock now. what has been done to reassure investors what the future holds for the largest media company. hey, what's going on here? do you want the long or the short answer? long i guess. chevy is having a great-deal- on-the-2013-silverado- but-you-better-hurry- because-we-don't-want-to-see- a-grown-man-cry-spectacular! what's the short answer? nice. [ male announcer ] the chevy memorial day sale. during the chevy memorial day sale,
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welcome back to "squawk box". in the headlines this morning, after several disappointing economic reports yesterday, investors are looking ahead to two more today. we'll get the preliminary may consumer sentiment from the university of michigan at 9:55 eastern. and the april index of leading economic indicators at 10:00 a.m. apple ceo tim cook plans to propose a dramatic
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simplification of corporate tax law. during his appearance before congress next week. he told the "washington post" he will present specific proposals aimed at encouraging companies to bring overseas earnings back to the united states. get ready for more powerball fever. jackpot for saturday's drawing is up to $550 million. andrew? >> thank you, michelle. it was a year ago investors had facebook's ipo. the ipo fever that quickly became, i don't know, a little too hot. but the opening of one of the most anticipated public offerings was anything but stellar. let's talk to our guest host about this. henry blogett is still here. the associate editor at forbes. occasionally i'm told my
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doppelganger. >> that wasn't even in the tell prompter. >> we were talking in the 6:00 hour, was this ipo a failure? and the reason i was asking the question, if you're facebook, you still made off pretty well. however, the fact that the stock has not come back to $38, to me if you're an investor or frankly if you were facebook, the impact to do a secondary and how they feel about you long term and overall value, can you call it a win? >> so there's lingering disappointment but it is getting lesser by the day. people have pretty much forgotten about it. i think facebook did the smart thing. they took the money they were offered. howard stern, are people saying he should have been given a 40% discount just because he is stepping up? hey, we want howard stern to make money? he paid market value. investors paid too much.
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they should have been more conservative. >> i was pointing out earlier of the dotcom bubble, everybody cheered. stock doubles, triples the first day. >> is there a longer game to be played here? they only sold a small piece to the public. overall evaluation that's not what it ultimately could potentially have been? what is the natural price had this come out at a lower price? >> i think it is exactly where it is today. some people would say, oh, no. if they priced it at 20 and given an overnight gift at 40 investors would feel so warmly toward them they would just hold the stock. i think that's ridiculous. >> pretty big statement that the stock is priced where it should be. considering people are willing to buy at that level and sell at that level. >> but you're right. that's exactly what it's worth.
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>> i think we're really -- >> i was going to say mr. forbes, the question is what happens? when you look at where mobile is and sort of the overall view on facebook, the foreman times article just came out overnight, maybe people aren't going on facebook in the future. >> they have a billion users. go where the eyeballs are. i think it's a strong company. i'm not saying it's priced right, but it's not going anywhere. it's a whole new company. >> anecdotally do you go on as often? >> no. >> do you? >> no. i just don't use it anymore. >> but it's still growing. the user base is growing. and if you're not going on facebook, you're going on instagr
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instagram? >> twitter. >> in terms of the ipo market, total failure. it was supposed to be the sparb that got t spark that got retail investors back in. if facebook can't do it, how can we? he is seeing companies like twitter, like survey monkey, evernote, the next big ones. they don't want an ipo. they are going to try to stay private. in fact, they're working with private markets to create systems so they can sell stock privately and stay private. who wants the trouble? who wants the nonsense? >> i want to know in five years from now is facebook going to be google or friendster? >> they are certainly not going to be google. equally unlikely they are friendster. >> pre-facebook. it didn't work out. >> they still have a massive
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market cap. still a cool place to work. smartest kids out of school want to work at facebook. it's a massive company that's still sexy. and they have a lot of talent there. >> that's where all the cool kids want to work when they graduate is always the cool spot. >> they're making big investments for the future at the expense of current earn. that's good. more of our companies should do that. but they vice president come up with a product that is like google's. >> we will continue this conversation. thank you, guys. more from you throughout the program. coming up, carbon dioxide, demonized compound. is it really carbon making you cough dirty, sooty or a boom for plant life? one professor explains why increased levels of carbon
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dioxide are probably not correlated with rising temperatures. that story next. monday, a "squawk box" exclusive. dallas federal reserve bank ceo richard fisher joins us to discuss the fed's easy money policy, the economy, and react the our interview earlier this week with hedge tkpupbd titan david tepper. and the fate of jamie dimon and jpmorgan. [ agent smith ] i've found software that intrigues me. it appears it's an agent of good. ♪ [ agent smith ] ge software connects patients to nurses to the right machines while dramatically reducing waiting time. [ telephone ringing ] now a waiting room is just a room. [ static warbles ]
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all right. switching gears to the science. and i use that in the loosest term possible. the science of global climate change. our next guest is a physicist. he says carbon dioxide emissionsis something the world has seen in its entire history. he argues rising co2 are weakly linked to rising temperatures. and actually would increase productivity. he wrote a big piece with another person that was actually on apollo 17.
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professor william happer who co-wrote "in defense of carbon dioxide." it appeared in the journal a couple weeks ago. we will immediately hear you're not really -- you don't have enough background to be judging climate science at this point and that 98% of climate scientists say there is a link between carbon dioxide and warming. you say there is not or a very weak link. >> well, you can look at the geological record. you know, we have carbon dioxide for many years. >> 400 parts per million. in the past we have seen what type of levels? >> 4,000. >> 4,000 parts per million. hold on. i heard al gore say these are the highest levels in human
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history. if you look at the age of the earth, 24 hours ago. man has been around 11 seconds out of 24 hours. it's true we haven't been at 400. we have been at 1,000, 4,000, correct? did you see warming and do we know whether the warming came before co2 levels came up or as a result of the co2 level? >> well, the earth is always warming or cooling. the most dramatic example is this series of ice ages we're living through. but during that time for sure there's a correlation between co2 and temperature. but temperature always changes first. and then co2 follows. >> that doesn't help. here's one of the quotes from the piece. hopefully we can look at a couple charts. cessation of the global warming for the last decade or so has shown how exaggerated nasa's and
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most other computer predictions. has there been any global turin increase since 1998? >> no. >> and you can see that plotted by objective scientific organization? >> yes. there are many records, surface records, satellite records. >> now, considering co2 has increased every year concentration since 1998 i have seen them go back, computer models, to try to explain why there's been no warming since 1998. and the latest is there's a layer in the middle of the ocean absorbing more heat than normal. have you seen that? yes, i have seen that. >> and they will say 15 years is too short a period. and the entire thesis is on 150 years of warming. i didn't need you here, i don't think. >> what he said. >> you could be a defense
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attorney. >> i'm just trying to make the point that co2 is not a demon. i wasn't going to let you get to the point where you say 1,000 parts per million would help the the planet. that's your thesis, right? >> i think 1,000 parts per million would be better for the planet? >> how? >> agricultural activity is already going up. if you look around the world, many greenhouse operators put in several thousand parts per million into their greenhouses. >> people don't want to live in those greenhouses. >> would there be any negative effects of breathing 1,000 parts per million co2? >> absolutely not. >> 1,000 parts per million? >> i'm not a scientist or expert. i admit it's hard for me to push back. but i read. and the readings would suggest that we haven't had this amount of carbon while humans have been around. so we have talked about a lot of
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data over a very long period of time. >> .04. we're not talking about a period where we have been around. and we're here and what our impact is or is not. >> our primate ancestors were here 70, 80 million years ago. that's when we evolved. >> not that long ago. >> it was 10 times what it is now. we also let our sailors and submarines live in atmospheres that are several parts per million. >> can you explain why well intentioned people -- i can't imagine that they -- that if we go another five or six years or temperatures don't rise, we will have to revisit all these models. will they go back and revisit it and maybe say, gosh, maybe we were wrong? what is it that causes it to be such a zealous -- almost secular religion with these people?
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>> i think they are already revisiting the models. many are saying probably overestimating numbers. many numbers in the models. the models are extremely complicated. you have the sun. you have the cooling. >> water vapor. >> complicated. >> sit a product of the hydrocarbon. >> when people talk about the increase in ocean levels, in alaska. >> receding glaciers. >> which receded prior to 1900. >> how do you explain that? do you write that off? as a spectator here, this is what i see. this is what i read. i need to understand what to think of it. you're telling me to think of it differently than the way it's being portrayed? >> you should make a trip to glacier bay. the glaciers there are all gone. they disappeared in the 1800s. and in fact, that was one of the
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most famous trips. he pointed out all the glaciers were gone. that was long before there was any increase of co2. >> basically, to summarize, the stat that we keep seeing, 90% of climate scientists, they're wrong. and we should don't worry, be happy, burn, burn, burn. is that the bottom line? >> first of all, the statistics on the 97% are a little phony. you know, if you look at the questions, they are co2 affect the climate? i would say yes. so i would be part of the 97%. >> you wouldn't be asked because you're a physicist. they don't ask the question. they don't freak out. >> you can ask the question to get any answer you want. >> how do we explains hurricane sandy and all the storms? is it climate change? >> that's even more preposterous. >> you can look at the data. there's no evidence in the data.
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>> there were three storms that hit the east coast, new york, twice as strong as sandy in one year in 1954. that's only how many years ago. and we have guys like bloomberg saying vote for president obama because of sandy, climate change. we just had a tornado. we have had a bad tornado in the last couple of days in texas. but it's a 60-year low in terms of tornado activity. hurricanes, it's never been eight years where we haven't had a category 4 or 5, something greater than 3 hit land. it's never been this long. eight years. if an adverse climate event occurs anywhere in the globe, you will read about it. flooding in pakistan. my entire life there have been climate events that have happened. >> why do you think they keep on -- >> just about -- >> every --
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>> most scientists -- >> but they take the models, where you're going to be and extrapolate where the tides will be, ocean levels will be. >> you don't feel like a minority? >> a small minority. i think if you honestly polled scientists you would find half are on my side. >> thank you. appreciate it. >> criticism of the handling of the bloomberg breach. how we get there is not. we're americans. we work. we plan. ameriprise advisors can help you like they've helped millions of others. to help you retire your way, with confidence. ♪ that's what ameriprise financial does. that's what they can do with you. let's get to work. ameriprise financial. more within reach.
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it's been a week since
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public disclosures of the bloomberg breach. is the company any closer to revealing what happened? steve liesman joins us. unfortunately this didn't pertain to the government. this is a good one. >> if it were tied to the obama administration. >> can't we tie it to bloomberg? >> i would be happy to do that. criticism of bloomberg responses a week after the controversy went public. leaving key questions unanswered. jpmorgan and goldman sachs still waiting for a response from bloomberg. journalists revealed to be using client information. chris roush down at the university of north carolina saying bloomberg needs to step up its game on disclosure. cnbc sent a list of unanswered questions to bloomberg about the
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breach. the company declined to respond. here are four of the questions we asked that remain unanswered. how is the information used? telling cnbc. this is the number one question they want to know. they won't be satisfied until they know if the information works its way into stories and which stories specifically. what has really changed? restrictive access of reporters to this but said nothing about editors and news executives. when did the company learn journalists were using this information. we asked if any changes were made then. if not then, what drives the company's ethics? they did not change its practices. both changes on the journalism side. that worries professor roush who
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worries the next time a large client complains about something. we are looking for bloomberg's coverage of this event. they're not covering it as part of a matter of policy themselves. and i will tell i professor roush pointed out what the "new york times" did with jason blair, which was a big scandal back 10 years ago. one of the ways they got out from under this, he called excellent reporting on their own internal scandal. do you have an opinion on how well or not they have done? >> i think the questions you asked are perfectly legitimate. hopefully jpmorgan's request will get that information out. it's very important. how long did they know? if it was being used. if it was just let's see if somebody left a firm. that's bad enough. it's still a breach. if it's just that, okay, they can probably get past that easily. we want to know exactly what happened. >> there's two different attitudes. jpmorgan sounds really angry to me.
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goldman is, well, you know, they brought the complaint. >> jpmorgan, bloomberg broke the story about the whale. it was a trade that was contained. jpmorgan was doing okay. the the moment it became public, everybody ganged up on them. they could easily make the argument that it cost us billions of dollars. >> and the fed, for example. >> they're angry. >> guess what? bloomberg was one of the most aggressive when it came to reporting on and going after requests. >> which we at cnb applaud. they are competitors in distribution and business news both on tv and on the web. but they are extremely like appalled was the word somebody used. >> as a business matter so many people are so addicted to their bloomberg journal on wall street that it seems to me -- i don't want to say tempest in a teapot but ultimately if you're this
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addicted it will be hard to start scaling back. >> he barely mentioned journalism at all. a passing nanosecond. this must be such a pain for him. >> they are stealing it from all the investment banks. >> well, they are. you're right, joe. they are branching out. that's an area of concern answer. and you can't deny maybe wall street is pushing this because they see bloomberg competing on that side. >> he's not going to be able to know what i'm talking about because he doesn't listen. isn't that your point from the beginning? he has no idea what i said his point was. like every other conversation. the problem is at a competitive level they can learn how to do things. thank you. what are you looking at?
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>> a note. no, you. still to come, the reaction to the scandal from both sides of the aisle. house ways and means committee chairman dave camp. and charles rangel is going to be our guests. penélope ] i found the best cafe in the world. nespresso. where there is an espresso to match my every mood. ♪ where just one touch creates the perfect coffee. where every cappuccino and latte is made at home. and where i can have exactly what i desire. ♪ nespresso. what else?
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time to face the music. ousted irs chief steve miller will testify before the house ways and means committee today. first, we will talk to the committee chair republican dave camp and democrat charles rangel who knows a little bit about the irs. one year since facebook's ipo. we'll bring you a report on some emerging leaders of the social network. and talk to a tech investor about the company's future. >> the top disruptors in the telecom industry. >> what? >> we'll be unveiling companies shaking up the world of communications. the third hour of "squawk box" starts right now. ♪
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>> welcome back to "squawk box" here on cnbc. first in business worldwide. can we get those glasses now? >> carl has been wearing them. >> bare naked ladies. >> do you want to start developing apps? >> i'm joe kernen. henry blogett, ceo. anyone ever call you hank? >> they have. my dad was hank. >> you would rather be henry? >> yes. >> you're not jewish? >> no. >> heschi? >> henry. >> steve bertoni from forbes.
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first, though, michelle caruso-cabrera. only three names. >> the house ways and means committee will hold a hearing on the irs scandal. lawmakers will question the newly ousted steve miller. inspector general for tax administration will also appear. >> stay it again. steve miller. >> ♪ >> chairman david camp will join us at 8:30 a.m. and charlie rangel is also piling on. stocks did finish near session lows. among the reasons for the pullback, comments from fed officials about some openness to the tapering of the central bank's bond buying program in the coming months. futures are expecting we would have a positive open. >> we have other news this
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morning. jpmorgan sent a letter to shareholders urging them to split the chairman and chief executive roles. reiterating the bank support for certain board members. those letters one in a series. making a final effort back ahead of tuesday's annual shareholder meeting. one of t. rowe price will be backing down and voting against the proposal to split the chairman and ceo roles. it is among the largest shareholders. i should say that is one member of t. rowe has said that. we will see if that represents the entire firm's view. now we will talk about facebook. last year when facebook went blackli public the focus was on c split. now jewulia joins us with more. >> that's right.
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facebook road show all about mark zuckerberg, sheryl sandberg and david ebersman. sandberg is on tour promoting her lean in book. here are three sharing the spotlight at facebook. chris cox spearheads innovation. he was involved in the site's redesign and graph search and is so close to zuckerberg that he speaks to every new employee on their first day at facebook. he dropped out of stanford to join facebook. and mike schroepfer, chief officer and vp of engineering. he came from mozilla. he is responsible for all the
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tools used to develop products. he makes sure service works around the world 24/7. overseeing the biggest chunk of facebook's revenue is david fischer. he was vp of online sales and operations, before that work in the treasury department in the clinton administration, a similar trajectory as sheryl sandberg. we can or is expect these three and others to take a more public role in the year to come. andrew? >> julia, thank you for that. joining us now with more to have a discussion. i did not say okay, joe. you should know behind the scenes joe -- i say okay a lot on the show, apparently. >> it's a normal thing. i say all right. >> he has now added into the
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teleprompter, don't say okay. >> i admit, i've got problems. i say um. >> more on the anniversary of facebook's ipo, the co-founder and ceo of w.r. handberg. behind the likes of apple, adobe, amazon. good morning to you, bill. i won't say okay. we're thrilled to have you a year later. when you look back at the ipo and you look at the market now, was there a long-term impact, a long-term effect of what seemed like a failed ipo either on facebook itself or on the markets? >> look, i think facebook is a very strong company. ultimately the market will judge facebook on its own performance. it's not a long term or totally negative thing that will stay with them forever. it is too bad, though.
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to me it showed that the traditional ipo process really is dysfunctional. it just didn't work very well for facebook. >> i was going to ask you if you were the man, one of the men behind the dutch auction. that's what google did. what would facebook had priced at if it had done a dutch auction? >> well, we didn't run a mock auction. we couldn't because we weren't part of the group. based on the trading we saw prior to the ipo, the second market type trades, our guess was it was going to price somewhere around the mid-20s. >> really? >> yeah. >> so pretty much where it is now. we have been talking about this all morning. if you're facebook, if you're mark swruzuckerberg, was this successful in that you got to take an ipo off the table? >> it was successful.
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they got a good price for their shares. i bet you if i ask would he do it over again, he would rather have an offering like google. it was fair. all the google investors really have profited from that ipo. >> bill, henry blogett. i'm very interested in your comments. facebook priced close to the market demand, one of the big advantages of the open auction. companies aren't leaving a huge amount of money on the table. i you just get the price close to equilibrium. what was the big mistake here? temporary dedemand that inflated the price too high? they should have priced at the 25 range. then the the stock would have opened at 40. but that's fine because it would have settled back into 25? i feel like facebook did the right thing. they took the offer that was
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there. the stock was there for a day. it traded down because it was too expensive. people were willing to pay too much for it? >> henry, i think -- look, the problem with the system is that it's very hard to figure out what the market equilibrium price is going to be. the problem with the system is that everybody is used to putting in expressions of interest for deals way over what they really want. there's a huge amount of demand that comes into an ipo strictly because people think it will trade up on the first day. and they flip it the first day. what you really have to find out is, hey, what is the price that a portfolio manager is willing to pay and hold the stock. because that is going to be where your market settles. and i just think the current system doesn't let you do that. >> are you saying a dutch auction won't let you do that.
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>> it is the way you open stocks on exchange or anything else. you basically find a clearing price that clears the trade and balances supply and demand of real orders. that's the difference. you have real orders in an auction. >> bill, what do you think of all the trading that took place before there ever was an ipo? that's one of the big distinctions. second market. there was all these different offers with goldman sachs and others. it allowed employees to get in and out of the stock before it was ever public. >> you know, these sort of semi public/private markets have evolved because the public market has not been available really through ipos for a larger number of companies. so this is a way to allow facebook employees to gain a little liquidity before they actually went public. i personally think it's a bad idea.
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because to me a public market gives transparent transparency,d out in the open. >> okay. bill hambrecht thank you f, tha joining us on facebook's one-year anniversary. >> a legend in the business. >> dutch auctions. >> it was a sad case of steve case's brother. remember that? he was ceo. died -- really successful kids from the same family. >> hambrecht now a part of jpmorgan. >> the old robby stevens day. montgomery securities. >> four horsemen. >> used to go out to the
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ritz-carlton for the conference. >> there are no more -- >> biotech. >> this is a big loss. lots of successes. lots of things to criticize about that period. but it was very exciting. very exciting for speculative investors. >> real quick, morgan stanley. you know, morgan stanley of the bank that underwrote this ipo. they took a lot of flack. they are still doing a lot of business. all these people running around -- >> facebook came out and defended them vociferously. >> they got a good price. >> they did. >> that's michelle's point. >> seriously. are you saying you should just give away money. if you were selling your house, would you do that? >> no. it was a bad -- >> completely overhyped. it was supposed to be -- >> in the future it will become less and less important proper.
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>> ultimately, by the way, distracting. that you have to say is true. >> no question. it's not a mystery why nobody wants to go public. >> if facebook can't do it right, how can we do it right? that's the problem. coming up, steve miller set to testify before the house ways and means committee. dave camp will join us first on squawks box. later, we'll talk to charlie rangel as well, a democrat on the committee. ll strategies to generate income? with fidelity's new options platform, we've completely integrated every step of the process, making it easier to try filters and strategies... to get a list of equity options... evaluate them with our p&l calculator... and execute faster with our more intuitive trade ticket. i'm greg stevens and i helped create fidelity's options platform. it's one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account.
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ousteders chief steven miller is headed to capitol hill to testify before the house ways and means committee. representative dave camp, chairman of the committee, joins us first on cnbc with a preview. good morning, chairman. it's not to say that mr. miller won't have some -- won't be able to shed light on some things. but i like the previous guy too. this is the guy you got first. he may have heard what was happening. but i want to know how it started, who knew about it two years ago. >> well, exactly. we want to know who hatched this plan. he is the existing acting commissioner. he is still in the role. he is actually where we need to
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start. we will have the inspector general who can fill out the details which is a cursory look. we need to dig deeper and find out who knew this, who authorized it, who thought of it and why it was allowed to continue for so long. >> i'm not going to call him defenders necessarily. people that are arguing this is a tempest in a teapot, they keep talking about that it didn't involve audits. it was scrutiny of entities that should be scrutinized. not selectively, obviously. you want to make sure a tax-exempt status is legit. when people talk audits they say, wait a minute, there's no evidence of that. any evidence at all people were singled out for audits based on political beliefs? >> well, the real problem here is that people were treated differently because of their political beliefs. and it was only conservatives who were targeted and
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discriminated against. so that is very troubling. that is a big deal. we don't know how far this went. we know some confidential tax payer information was released in violation of the law. we have news reports of that. we want to follow up on those things. >> it doesn't mean that the government knew. it means -- does it? it means everybody complains. business as usual. people hate the irs. you can't assume the administration got wind of this just because there was a lot of complaining going on. >> we're trying not to make any assumptions. this was a pattern. this was a culture of discrimination. it was okay to go after conservative groups. again, progressive groups seem to find the process just work okay for them.
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so that's what's troubling. particularly because it's the irs. they have very confidential information. particularly the irs because of the confidential nature of what they do. >> the question about the audits. "the wall street journal" has written one case in particular where an individual was targeted on a number of regulatory levels, not just the irs. i mean, it is not a stretch, is it, to think if you have a group of powerful bureaucrats who are concerned about the preservation of their jobs examine they want to go after a tea party group that wants the government to be smaller and for there to be a smaller irs, is it not -- is it at some point worth asking whether or not people were targeted for audits as well. >> people are coming forward after the media has broken and said they were brought in for interviews and they were
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audited. there's very compelling stories that have already been in the press. letters already delivered to the president from the congress from various organizations as well. yes, that is something we're going to need to follow up on. it's clearly something that may have happened. we just don't know at this point. and the thing that is a real concern is we were getting a wind of this and asking questions. they weren't responding. there's another issue why were they not responding to the representatives of the american people. why were they hiding on this? why were they not forthcoming after they were investigated. complete lack of candor. >> tim cook, ceo of apple, will be testifying about tax reform. i think these two ideas go together. the tax code is extremely complicated. to joe's original question, right? look at whether or not are they really a 501 c3, c4. the more complicated the tax
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codes gets the more people you need at the irs, the the more potential for abuse. >> absolutely. complexity is part of what gets into this. a simpler flatter tax code would take some of the ability of the irs to go on fishing expeditions. i think this might focus the american public on the need for tax reform, which is something i've been working on for a couple of years now. >> congressman, what would you say the political future for sarah hall ingram is at this point? she was in charge of the tax-free stuff when this was happening. now she's in charge of the irs and the affordable care act. any way you can let her stay in office? how is that going to work? >> i don't want to jump to a whole lot of conclusions because we haven't had our hearing yet. culture of discrimination that was allowed to exist at the irs. and she was there for part of that.
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is very, very troubling. >> affordable care act is not that big a deal. implementing that, is that that important? it seems pretty important. >> only one-sixth. >> might be something to look at. >> don't worry. we're going there. this is going to take some time. this was put together. we're going to look at all of that. >> how is the scandal boeing to affect the irs in terms of safeguards, how they operate? can reform be done, or is this endemic or a few bad apples? what do you think? how can we make the regulations to safeguard from this? >> look, i think this is more than just a few people. this clearly went on for a loeu hrop long period of time and deemed to be okay. why was this an okay way to do
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business? i have real concerns about that purchase we are getting stories that people knew somebody, had the right views, progressive views. their applications went through without a hitch. and concerns that taxpayer information was released for political purposes. that is violation of law. we have a lot we need to get at. first we need to understand how this started and why it was allowed to continue. >> congressman, how outraged if we were talking about democrats? >> i'm sorry, could you say that again? >> i know. the question is, you know, how outraged would you be if it was the other side? >> look, i'm sure if it was the reverse, we would be having people rip their clothes and throw ashes on themselves. we will do this in a professional way. it's more important to get at the truth than to get the headlines. this will take some time. we're going to get there.
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i'm nothing if not persistent. >> okay. . congressman, i appreciate it. thank you. >> thank you. >> i mean, it is true that -- >> what's that? >> progressive people should be put right through. they want to do things to move the company forward. >> no. >> they want more. >> huffington posts you should be looking at these people because they want to do bad things. they don't want progress, good things. so they should be looked at. not the other side, you moron. >> we've got to go. clients are always learning more
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coming up, more on the fallout from the irs scandal. ousted steve miller will testify before the house ways and means committee. we'll be talking to committee member charles rangel. he's a democrat from new york. and a republican. fair balanced here to go with the democrat. later, unveiling the top game changers in the telecom industry as disruptor 50 series continues. as we head to break, look at u.s. equity futures. are you still sleeping? just wanted to check and make sure that we were on schedule.
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welcome back to "squawk box". let's look at some of the stocks on the move in this morning's trading. jp penny first quarter loss. revenues short of consensus. 16.6% from a year ago. they need time to climb out of, quote, an abyss. causal, awful quarter.
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nordstrom earned 53 cents. weaker than expected sales and higher expenses. it cut its full year sales outlook. general motors upgraded to buy. g.m. is hitting a sweet spot in the current u.s. economic cycle and making progress in turning around its european business. outrage over the irs scandal pouring out from both sides of the aisle. members of the ways and means committee. testimony from ousted irs chief steve miller in about 30 minutes. we've decided, congressman, that it wouldn't matter who this was directed at. it's something that is totally unacceptable. and the president said that. >> there's no question about that. it may be embarrassing for the administration. worse, it undermines the confidence that americans have an attack system. that undermines really what america is all about.
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democrats or republicans. this is serious. welcome the hearings in a bipartisan way, we want to find out how this thing got started and cut this cancer before it spreads. >> you hear a lot of the scuttlebutt in washington. in the last couple years, did you ever hear rumblings about something like this? did you have any idea? people always complain, right? i'm getting singled out. you hear people don't like the irs. but did anyone in the beltway sort of have actual knowledge that maybe this was happening or a fear this was happening? >> no one has ever asked me that question before. but the truth of the matter is, yes, we did. but we heard it was the republicans that were getting the benefit of irs by misusing the 501c3 as a result of the supreme court decision and by
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allowing people to really influence -- support republican candidates against democrats. and under the law they didn't have to say where the money was coming from. so to be honest with you, most democrats really thought if there was any wrongdoing it was on the other side. >> that's classic. even in the rumors and the hearing things it's partisan. i bet you the republicans heard they were being singled out. you were privy to the democrats complaining, probably. >> well, everyone agrees that we need tax reform. this invites wrongdoing. but to find out that the irs was deliberately involved we have to find out who did this. because like i said, it not only cuts both ways. but the worst thing is americans lose confidence in the system. this isn't a partisan issue.
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>> congressman, if you bring out the rumors you were saying this new law showed -- or you guys were talking amongst democrats that the republicans were using it to their advantage. not being truthful in the way they were filing, equity. when you say that, that says to me, okay, that's why the irs went after the tea party. >> may say that to you. we haven't the slightest idea what is said to them. no matter which side sit on, it is wrong for people to do this. it is hard for me to believe that people working for the united states government were so partial they would risk criminal indictment to do something like this. and so i don't want to believe that it was done intentionally. but that's what we have hearings for. and the attorney general said if necessary -- or he said he will pursue a criminal investigation. so we'll get to the bottom of this. my only part is it's wrong no
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matter who participates in this. >> is this bad app he els or is this systemic? >> i would like to believe it's only a few people -- i don't know what to say. if it was stupid, negligent, if indeed they thought they were giving any party an edge, it is criminal. like any criminal investigation you have to find out is it i'd spre widespread. >> we cover wall street. there's a couple of rogue traders. the question is, were they operating independently or do you hold management responsible? the question then this morning, are we going to hold management responsible and have we held management responsible already? >> let me make it abundantly
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clear. the good people who work for the irs service, take a bad hit every day. tax collectors in any country get a bad shake in trying to perform their duty for the country. and so i know there are hard-working people in the internal revenue service. they don't deserve the knock they're getting as a result. i might add self-servingly that's true of congress. we got real bumps down here. but i really don't think that the whole congress should be undermined in trying to get something done. and the american people should be on the case of congress, republican, democrats to allow us to do what we were elected to, and that's to move forward. >> congressman, you point out this is embarrassing for the administration. is the administration handling it well? is there something else that should be done? >> well, the president is doing all that he can do. he's saying all they can. the attorney general is doing
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the same thing. he says that he's outraged by it. his conduct in getting the resignation of the person, management as you pointed out is there. and if it's any more for us to find out certainly, further investigations will. i tell you that we will be in a better position to answer those type of questions after the hearing. but people talk about impeachment. >> okay. >> it's ridiculous. >> what about the lady now in charge of obama care and the irs? so sarah hall ingram was commissioner of the tax exempt office between '09 and 2012. she didn't orchestrate this, but she was in charge. does the buck stop with her. as a democrat, would you stand in the way of efforts 20 remove her as in charge of obama care.
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>> in all fairness, we have to find out what was her involvement. >> she was in charge. she probably should have known. >> well, everyone wished they should have known. i wish i knew what staff do every minute of every day. i don't think i mean what i'm saying. but it is impossible -- >> so you would be okay with her staying at the affordable care act office? >> i have no idea because i don't know her involvement. and it's unfair to say that because she was in charge that she should have known. i say one thing, we should find out in this congress and this investigation what does she know, when did she know it. >> one final question, sir. unfortunately, when something like this happens, it raises all kinds of other questions. were being being audited unnecessarily, et cetera. and it raised this rumor about weather harry reid got to see mitt romney's tax returns as
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well. >> there's three things we have to do that would help tremendously. tax reform, tax reform, and tax reform. there's no excuse for us not cleaning up this mess that's in this system. >> all right. congressman rang he el, appreciate your time today. thanks. >> thank you. >> coming up, our disruptor 50 series is continuing. up next, the top "game change"er in the telecom industry. you can't miss this one. former wells fair going chairman and ceo dick kovecevich. plus, a special extended interview with dallas fed president richard fisher. it's going to be a huge show. >> monday? >> starting at 6:00 a.m.. nespresso. where there is an espresso to match my every mood. ♪ where just one touch creates the perfect coffee.
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welcome back to "squawk box". we're continuing our disruptor 50 series. now to julia boorsten who has a lot more. good morning. >> good morning, andrew. so far we have unveiled eight industries, retail, media, transportation, travel and leisure, health care and enterprise software, financial services. today we will be talking about telecom. it usually requires massive up front capital. posing a challenge to would be disruptors. these five companies are well on their way to putting pressure on
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established telecom giants. >> high-speed internet access at any time, even to planes, cars, boat by using satellites to surpass the reach of cell networks. backed by liberty global, it isn't set to launch until 2013. it has aimed to put its deals in business jets. twilio with clients ranging from home depot to sony, it uses the cloud to meet voice and mentaling needs. eliminating the need for billion dollar infrastructure. taking on at&t and verizon. what'sapp is 99 cents i tune and free to android users. 99 cents a year each year after. it offers unlimited text, calls,
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video messaging and works across all providers. running alongside customers's existing plans with no additional costs. instead of bypassing cellular networks, liveu use them to broadcast high quality transmissions. it make it possible for networks to deliver news from dangerous place at a low cost. most importantly in contrast to satellites, governments can't monitor liveu transmissions offering greater safety to journalists on the ground. we have much more exclusive cnbc disruptor 50 online. followous twitter. go to disruptor coming up in "fast money" today, unveiling our final sector energy. you won't want to miss it. andrew, back over to you. >> thanks for that. our telecom -- >> i didn't write it in there.
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i didn't do the 8:30. >> we have our next disruptor 50 boku. they found a way to piggy-back on the expanding and the company disrupts telecom and financial services by eliminating credit cards for online purchases. they are billed right to your mobile provider, not to your credit card. that's the big distinction and differentiation. cnbc disruptor 50. john, thank you for joining us this morning. >> my pleasure. glad to be here. >> explain to the audience for those who don't know it how does it work and what phone companies are you hooked up with already? >> well, we're basically hooked up to something like 260 different phone companies around the world in 68 different companies. through those we can put charges on the bills of 3.7 billion
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people. you know, that's half the people on the face of the planet. that's more than visa. that's more than mastercard it's more than mastercard and visa combined. and the way we figure it is we're actually helping with telecom companies. we're helping them to disrupt the payment industry. you pop it in. message comes through on your cell phone. you're done. it's just that simple. >> explain the economics of your company and the economics on the telecom side. you have to be taking a piece of every transaction? >> yeah. we take a piece of every transaction. they take a bigger piece too. we very much see ourselves in partnership with telecom companies together to come up with this much, much wider reach payment system which is more secure. everybody knows the phone number. i don't know about you. i don't know my card number.
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it's much easier for me to just type in my phone number. >> a lot has been made of four scare project. how do you compare or relate to that? >> what we team up with the the guy who did a lot of transactions, people like facebook, people like disney. they're doing a lot of transactions over the web. that's really where we play, in the web and trying to use the phone network source of funds. we don't butt up much against them. pay pal, we certainly reach through the phone networks. 3.7 billion available users to us. those guys don't have to
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register. they don't have to especially roll or do anything. obviously pay pal has a lot of transactions. we kind of have them in our sights. >> the way it works is charges to merchants are in one lump sum. >> go on. >> what happens if i don't pay my phone bill? suddenly i have $1,000 because i charged stuff on amazon. how is that sorted out? >> we agree in partnership with the networks. very strict limits as to what it is we're able to charge and to how much. you're quite right. nobody wants $1,000 on their phone bill. we operate within strict limits. there's a dispute resolution. >> what's the cap? what's the most i can spend? >> well, it does vary from country to country. the cap maxes out at something
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like 30 pounds a day in the uk. but it's lower in other countries. >> and, john, real quick, do you ever expect to do face-to-face just by phone number? john? did we lose john? i think we lost john. we will thank john. we appreciate it. congratulations for hitting the disruptor 50 list. we'll talk to you soon. >> coming up, don't close out your trading week without cramer. stocks to watch. we will head down to the stock exchange next. monday on "squawk box", former chairman and ceo of wells fargo. we will ask about jamie dimon's role at jpmorgan and richard fisher will be our special guest. starting monday at 6:00 a.m. eastern.
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is so ubiquitous to share on the new york stock exchange, but michelle says they got everything out of the ipo, and other people say don't take everything and make people happen thhappy and it was a botched move. >> it was a botched move and what we know from the last conference call is that facebook didn't anything going in mobile and so they were caught flat footed and people thought they were doing well until you saw the numbers and then you killed retail. joe, you and i speak about re l retail and when they come back, it is whack a mole, and facebook is one tof the worst whack a moles. >> well, rupert faced something today that henry said that reminded him of -- >> you remember that rupert famously called facebook and
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then it imploded and the metrics, and that is exactly what happened, the user inten intensity is going down. and ratings are droppings. >> does it grow into a $70 billion company, jim? >> well, it depends on the execution, and i have been watching yelp, but it is small and going from 18 to 30 because they did come up with a mobile solution, and yesterday we had the groupon people on and i thought it was dead, but they have a mobile local solution, so the answer is execution, and they can do it, but the execution is difficult. i believe in them, because they are smart. i know that google had a lull for a while, and we will see what happens, but they were totally caught flat footed and not the geniuses that they the thought they were. >> your google price target finally got hit. >> i know. >> it did. >> well, i know. i like the google guys are really good at what they do. >> look, you can either do
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direction and target or timing, because anybody who tries to do both is crazy. you only have to get one right, right? >> yes, you only have to get one right, joe. >> and timing or direction or target, and you want to say anything? >> well shgs, i love him, but i jim cramer. >> thank you, guys. >> that is what gets me. i was watching geno again in absolute power and hackman who was the best and michael douglas come up to kiss cramer's ass and br bradley want to get his picture and it won't happen to us, and even you, the absolute star blower. it won't happen to you. but it does to cramer, because you can name any stock, and he is like -- >> you can do with plucking chickens. >> yes. >> well, all right. thank you, krcramer. >> coming up this morning our hosts have been jim blodgett and
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tony forbes, and we will have the last word as we look at the talking squawk blog, and in this edition my cousin vinnie, the truth about the hair, and the sony walkman, go to ♪ ♪ ♪ what makes a sleep number store different?
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welcome back to "squawk box" and let e's get to the guests, steve broad jet and steve bertonni. e earlier this week, i made a flip comment and i want to apologize about it, because there was a texting while driving campaign that verizon and team sprint put together and i made a comment that they were doing it to save money and we have been e-mailing about it and i want to apologize about it, because it is an important campaign and it is early in the morning and no excuse about it, and it is important and i don't want to make short of it, because it is a huge problem. >> i messaged and i said that andrew looks at a lot of things through the prism of money, because you are cleep. >> -- you are cheap.
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>> now you are making light. >> no, because i saw zach johnson running around with -- and wait. do not have these things and not do it. you are looking down and a couple times you don't watch and they are good ads and effective and they scare the crap out of you. s sorry to take up so much time there. >> it is a good one. >> good message for everybody. >> "squawk on the street" is next. "squawk on the street" i'm david fab wer jim cramer and brian sullivan live on the street, and carl quintanilla is on sassignment this week. and the stocks are higher after one day of the stock markets were in the worst session.

Squawk Box
CNBC May 17, 2013 6:00am-9:01am EDT

News/Business. Becky Quick, Joe Kernen, Andrew Ross Sorkin. Business news and talk as the trading day unfolds on Wall Street. New. (CC)

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